Shopsmith Forums

Greetings woodworkers. Just wondering if any of you are good stock pickers. I'm new to this, although I have put retirement money away for years in IRA and 401k mutual funds. I started looking into dividend stocks lately so I thought I'd share a little bit here with you. Here is my pick of the day: http://laterthanuthink.blogspot.com/201 ... f-day.html

Tom
I have a problem with stock pick guys. I figure if they were any good at it they would be on the beach enjoying life instead of trying to get me to invest in something they say is good.

Today's stock market is a house of cards and it is crap shoot as to when that house is coming down. You can bet most of the stock pick guys will emerge from the rumble unscathed because they never invested they made their money telling others how to.

I hear you Ed but in the long run the stock market is a pretty good place to be. In the short term it's certainly over valued right now but the correction is yet to come after years of doomsayers predictions. But scoring a home run in the stock market is not what I'm looking for here. I'm playing small ball, looking for walks and singles. A lot of people approaching retirement today do not get a pension. They just have a lump sum and they have to figure out a way to generate monthly income. There are many strategies to do this and a person should use more than one of them. I'm experimenting with dividend stocks. Just testing the waters, I've got a few bucks in 20 stocks now. These are companies I know and have been around a while. Most are household names. They generate a quarterly dividend. On various days every month 8 of my stocks deposit a dividend payment in my checking account. So I'm using these stocks like a savings account. The difference is they pay a lot more than the pittance a bank pays. And over time the stock may also increase in value. Of course they are not insured. The may lose value. But even if the stock value fluctuates, the dividends keep coming. They may however cut their dividend. It happens. But I think there's a place for dividend stocks in my retirement plan.

My most recent pick of the day is Deere & Co. Deere pays $2.40 per share per year dividends. The stock costs $90 per share. That's 2.6%. Not too shabby!

I have always seen our economy as two parts. The real economy that is all of the small businesses, employees at Walmart, the doctors, nurses, mechanics, ect and then Wall Street. Two totally different arenas. I have always stayed away from the Money Changers, and relied on my own blood sweat and tears. So far it has worked out pretty well ....

My dad always said "if you are going to make money, you have to earn it". I think he was right ...

JMHO

So true Dick, money does not grow on trees. After you earn it do you stick it under the mattress?

I guess I did it wrong all these years, I tried to always work smarter, not harder.Keeping your nose to the grind stone just made for a bloody nose and a ugly face.

tomsalwasser wrote:I hear you Ed but in the long run the stock market is a pretty good place to be. In the short term it's certainly over valued right now but the correction is yet to come after years of doomsayers predictions. But scoring a home run in the stock market is not what I'm looking for here. I'm playing small ball, looking for walks and singles. A lot of people approaching retirement today do not get a pension. They just have a lump sum and they have to figure out a way to generate monthly income. There are many strategies to do this and a person should use more than one of them. I'm experimenting with dividend stocks. Just testing the waters, I've got a few bucks in 20 stocks now. These are companies I know and have been around a while. Most are household names. They generate a quarterly dividend. On various days every month 8 of my stocks deposit a dividend payment in my checking account. So I'm using these stocks like a savings account. The difference is they pay a lot more than the pittance a bank pays. And over time the stock may also increase in value. Of course they are not insured. The may lose value. But even if the stock value fluctuates, the dividends keep coming. They may however cut their dividend. It happens. But I think there's a place for dividend stocks in my retirement plan.

My most recent pick of the day is Deere & Co. Deere pays $2.40 per share per year dividends. The stock costs $90 per share. That's 2.6%. Not too shabby!

That's a 33 year return on investment. Providing the stock stays the same, the board doesn't decide to lower the dividend, corn prices don't tank, wait, I think they just did,etc...,etc...

I'm not against the stocks mind you, but looking at individual stocks will get you chewing on your nails real quick. Now, this being a woodworkers forum, I'd bet you'll get a lot smarter folks than me tell you you'll get a whole lot better return on investment,and not just the monetary kind, from turning tops, building boxes and enjoying the smiles your product brings to your client.

Here is a better return on investment at a lower cost per share.
http://www.wisconsinenergy.com/invest/d ... istory.htm
Living off of WEC dividends, worked there for 20 years, TRASOP program on stock.
This one I started with a hundred shares in 1980, did dividend reinvestment, now just collecting dividends and fat and happy.
http://www.rpminc.com/investor-information/
It is all about reinvesting dividends when young and not selling when a correction happens, you buy then.

tomsalwasser wrote:Greetings woodworkers. Just wondering if any of you are good stock pickers. I'm new to this, although I have put retirement money away for years in IRA and 401k mutual funds. I started looking into dividend stocks lately so I thought I'd share a little bit here with you. Here is my pick of the day: http://laterthanuthink.blogspot.com/201 ... f-day.html

If ya want a stock picker to listen to. Try this one.
http://www.fool.com/

I read a very good article about stock brokers in, no less, in Play Boy many decades ago. It was titled "To your brokers boss, he is nothing but a salesman". Jest of the article was how if they aint selling or buying there is no commission coming in, and they have to move the junk as well as the good stuff.